That means the loss would be a capital loss (long term, since it was inherited). I doubt that there is a mortgage on the property, but if there were, the interest would be deductible as investment interest. Property taxes are also deductible. Any maintenance costs (weed clearing, HOA dues, minor repairs) would be deductible as misc itemized deductions subject to the 2% of AGI haircut. Selling costs would go into the calculation of gain or loss on sale, as would any fixing up costs to make the property ready for sale.

Interesting. So what does the executor need to get to us to allow us to take the loss? It's all been sitting in limbo waiting for a seller, paying things like taxes and maintenance out of an estate account. Is there something in particular they should do? Can this all just be done on sale of place?

Frankly we are not talking about a large sum of money here, and it will be divided 5 ways, but a loss is a loss.

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